The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.

Amgen Inc.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

P/OP ratio

Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.

Amgen Inc.’s P/OP ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

P/S ratio

An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.

Amgen Inc.’s P/S ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

P/BV ratio

The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return.

Amgen Inc.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.

An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.

Amgen Inc.’s P/S ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.